SynopsysSNPS +0.55%95 FCF Margin % is 25.25% as of Apr. 2026, which is 20% above its 10-year median of 20.99. GuruFocus rates SNPS with a GF Score™ of 95/100 and a GF Value™ of $655.31 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 2,811 Software companies, Synopsys ranks better than 94.06% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. Synopsys's Free Cash Flow for the
three
months ended in Apr. 2026 was $575 Mil. Synopsys's Revenue for the
three
months ended in Apr. 2026 was $2,276 Mil. Therefore, Synopsys's FCF Margin % for the quarter that ended in Apr. 2026 was 25.25%.
The historical rank and industry rank for Synopsys's FCF Margin % or its related term are showing as below:
SNPS'
s FCF Margin % Range Over the Past 10 Years
Min: 10.33 Med: 20.99 Max: 34.66
Current: 30.35
During the past 13 years, the highest FCF Margin % of Synopsys was 34.66%. The lowest was 10.33%. And the median was 20.99%.
SNPS's FCF Margin % is ranked better than 94.06% of 2811
companies
in the Software industry
Industry Median: 2.4
vs SNPS: 30.35
Synopsys FCF Margin % Related Terms
Synopsys FCF Margin % Historical Data
* Premium members only.
The historical data trend for Synopsys's FCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Infrastructure subindustry, Synopsys's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Synopsys FCF Margin % vs Software Industry
For the Software industry and Technology sector, Synopsys's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Synopsys's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Synopsys (SNPS) has a FCF Margin % of 25.25% as of Apr. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Synopsys and its competitors. This is 20% above median its historical median of 20.99. Over the past decade, Synopsys' FCF Margin % has ranged from 10.33 to 34.66. According to the industry distribution chart, Synopsys ranks #167 out of 2811 companies in the Software industry, placing it in the top 5.9%.
Is Synopsys' FCF Margin % too high?
Synopsys' current FCF Margin % of 25.25% is 20% above median its 10-year median of 20.99. Over the past 10 years, this metric has ranged from a low of 10.33 to a high of 34.66. The Software industry median FCF Margin % is 2.40. Synopsys' value of 25.25% is 952.1% above this industry median. Based on the distribution chart, Synopsys ranks #167 out of 2811 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Synopsys has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Synopsys' FCF Margin % compare to NET and FTNT?
According to the Software industry distribution chart, Synopsys ranks #167 out of 2811 companies for FCF Margin %. This places Synopsys in the top 6% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 2.40. Synopsys' value of 25.25% is 952.1% above this benchmark. Historically, Synopsys' own FCF Margin % has ranged from 10.33 to 34.66 over the past decade. While the company's 10-year median is 20.99 vs. the industry median of 2.40, Synopsys has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Software company?
The median FCF Margin % among Software companies is 2.40, based on 2,811 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Synopsys's current FCF Margin % of 25.25% is 952.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Synopsys and its competitors. For the Software industry, the median FCF Margin % is 2.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Synopsys's current FCF Margin % is 25.25%, which is 20% above median its own 10-year median of 20.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Synopsys stock overvalued right now?
Based on GuruFocus' analysis, Synopsys (SNPS) is currently considered Modestly Undervalued. The stock's GF Value™ is $655.31, compared to a current price of $464.02 — trading 29.2% below its estimated fair value. The current FCF Margin % is 25.25%, which is 20% above median its 10-year median of 20.99 and 952.1% above the Software industry median of 2.40. Synopsys' overall GF Score™ is 95/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Synopsys (SNPS), the current FCF Margin % is 25.25% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Synopsys (SNPS) Overvalued in 2026?
Based on GuruFocus' analysis, Synopsys stock appears to be undervalued.
The current stock price of $464.02 is trading 29.2% below its estimated GF Value™ of $655.31.
GuruFocus considers Synopsys to be Modestly Undervalued.
Key valuation signals for SNPS:
FCF Margin %: 25.25% (20% above median its 10-year median of 20.99)
GF Value™: $655.31 vs. price of $464.02 (29.2% below fair value)
Industry Position: 952.1% above the Software median (#167 of 2811)
No single metric tells the full story. See the SNPS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Synopsys is a provider of electronic design automation software and intellectual property products. EDA software automates and aids in the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Synopsys' comprehensive portfolio is benefiting from a convergence of semiconductor companies moving up the stack of technologies toward systems-like companies, and systems companies moving down-stack toward in-house chip design. The resulting expansion in EDA customers alongside secular digitalization of various end markets benefits EDA vendors like Synopsys.
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